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Keynes on Probability, Uncertainty and Tragic Choices

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  • Anna Carabelli

Abstract

[eng] Right from 1904-6 Keynes was interested in the problems of moral dilemmas which are typical of Greek tragedy. His constant attention to the incommensurability and incomparability of magnitudes (probability and economic magnitudes such as real income, real capital and general price level) derives from this early interest in dilemmas and his concept of uncertainty is connected with rational dilemmas and tragic choices. So, in Keynes, incommensurability and uncertainty are connected with Greek tragedy. . Keynes deals with the incommensurability of reasons which are at the ground of probable judgement in his A Treatise on Probability : rational dilemmas arise when there is conflict between incommensurable, opposite and heterogeneous reasons which cannot be weighed down one against the others on a common balance. The dilemmas of the umbrella in A Treatise on Probability, of Buridan's ass in Keynes' s letter to Townshend in 1939, of the two Queens Victoria and Elizabeth in The General Theory are some of the examples to which Keynes refers in his writings. These dilemmas characterise situations of indecision, of irreducible conflict, that is of uncertainty. [fre] Dès le début (1904-6) Keynes s'est intéressé aux problèmes du dilemme moral typiques de la tragédie grecque. Son attention constante à l'incommensurabilité des grandeurs et à l'impossibilité de les comparer (probabilité et grandeurs économiques comme le revenu réel, le capital réel et le niveau général des prix) vient de son intérêt juvénil aux dilemmes et sa conception d'incertitude est liée aux dilemmes rationaux et aux choix tragiques. Donc, en bref, incommensurabilité et incertitude chez Keynes sont connexes à la tragédie grecque. . Keynes étudie l'incommensurabilité des raisons qui sont à la base du jugement probable dans A Treatise on Probability : des dilemmes rationaux naissent quand il y a un conflit entre raisons incommensurables, opposées et hétérogènes, qui ne peuvent pas être pesées sur une balance commune. Les dilemmes du parapluie dans A Treatise on Probability, de l'âne de Buridan dans la lettre de Keynes à Townshend en 1939, des deux reines Victoria et Elisabeth dans The General Theory sont des exemples dont Keynes parle dans ses écrits. Ces dilemmes caractérisent des situations d'indécision, de conflit irréductible, donc d'incertitude.

Suggested Citation

  • Anna Carabelli, 1998. "Keynes on Probability, Uncertainty and Tragic Choices," Cahiers d'Économie Politique, Programme National Persée, vol. 30(1), pages 187-226.
  • Handle: RePEc:prs:caecpo:cep_0154-8344_1998_num_30_1_1219
    DOI: 10.3406/cep.1998.1219
    Note: DOI:10.3406/cep.1998.1219
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    References listed on IDEAS

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    1. Rod O'Donnell, 1995. "Keynes on Aesthetics," History of Political Economy, Duke University Press, vol. 27(5), pages 93-121, Supplemen.
    2. Anna Carabelli & Nicolo De Vecchi, 1999. "'Where to draw the line'? Keynes versus Hayek on Knowledge, ethics and economics," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 6(2), pages 271-296.
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    Cited by:

    1. Carabelli, Anna & Cedrini, Mario, 2013. "A Methodological Reading of "The Economic Consequences of the Peace"," CESMEP Working Papers 201304, University of Turin.
    2. Giovanna Magnani & Antonella Zucchella, 2018. "Uncertainty in Entrepreneurship and Management Studies: A Systematic Literature Review," International Journal of Business and Management, Canadian Center of Science and Education, vol. 13(3), pages 1-98, February.
    3. Anna M. Carabelli & Mario A. Cedrini, 2010. "“Veiling The Controversies with Dubious Moral Attitudes”? Creditors and Debtors in Keynes’s Ethics of International Economic Relations," Working Papers 127, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont.
    4. Anna Carabelli, 2012. "A new methodological approach to economic theory: what I have learnt from 30 years of research on Keynes," Chapters, in: Jesper Jespersen & Mogens Ove Madsen (ed.), Keynes’s General Theory for Today, chapter 5, pages 79-97, Edward Elgar Publishing.
    5. Anna Carabelli & Nicolo De Vecchi, 2001. "Hayek and Keynes: From a common critique of economic method to different theories of expectations," Review of Political Economy, Taylor & Francis Journals, vol. 13(3), pages 269-285.
    6. Anna Carabelli & Mario Cedrini, 2010. "Keynes and the Complexity of International Economic Relations in the Aftermath of World War I," Journal of Economic Issues, Taylor & Francis Journals, vol. 44(4), pages 1009-1028.
    7. Christian Tutin, 2000. "Walras, Hayek et Keynes : trois économistes face au social," Post-Print halshs-01779945, HAL.
    8. Anna Carabelli & Mario Cedrini, 2011. "The Economic Problem of Happiness: Keynes on Happiness and Economics," Forum for Social Economics, Springer;The Association for Social Economics, vol. 40(3), pages 335-359, October.
    9. Anna Maria Carabelli & Mario Aldo Cedrini, 2013. "Further issues on the Keynes--Hume connection relating to the theory of financial markets in the General Theory," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 20(6), pages 1071-1100, December.
    10. Anna Carabelli & Nicolo De vecchi, 2004. "On Hayek and Keynes once again: a reply to Butos & Koppl," Review of Political Economy, Taylor & Francis Journals, vol. 16(2), pages 249-256.
    11. Hugo F. Alrøe & Marion Sautier & Katharine Legun & Jay Whitehead & Egon Noe & Henrik Moller & Jon Manhire, 2017. "Performance versus Values in Sustainability Transformation of Food Systems," Sustainability, MDPI, vol. 9(3), pages 1-31, February.

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